Microsoft is the latest tech giant to announce its new return-to-work (RTO) mandate. The first phase of the mandate is set to start in February 2026, requiring Seattle-area employees living within a 50 miles radius of a Microsoft office will need to be in office at least three days a week. Over the next year, the company expects the same from the rest of its U.S. and international employees.
Microsoft was one of the last big companies to offer their workforce flexibility. Competitors like Google, Meta, Amazon, Zoom, and AT&T have all announced their own unique policies requiring workers to be in the office.
These are all innovative, technology-led companies. Yet their RTO mandates and hybrid work policies are all supremely outdated.
Instead of honestly considering what the future of work means for employees and how it can benefit companies, many leaders are scared that if employees are allowed to work from anywhere, they will lose a bit of control over their workforce.
Real leaders are embracing the future. At Gather, we recognize that flexibility is the key to accessing higher tier talent, bigger clients, and ultimately better business outcomes.
Change of mindset
Once upon a time, CEOs were huge fans of working from home. Many notable business leaders are on record stating the benefits of working from home from a business, personal, and even a societal level. Mark Zuckerberg famously said, “I’ve found that working remotely has given me more space for long-term thinking and helped me spend more time with my family, which has made me happier and more productive at work.”
Why the sudden shift?
These RTO mandates aren’t to “build culture” or “increase productivity” or any of the other canned responses. Instead, many companies are locked into long-term leases on office spaces in cities all across the country. For decades, a 10-year lease for office space was the norm for large corporations. It kept rent costs stable and allowed companies to set up roots in major hubs across the nation. When companies signed these leases, it was a smart move.
Then came the pandemic. People were forced to work from home. Large office spaces weren’t just unnecessary; they became a hazard for employee safety. All work shifted to remote work, and the results spoke for themselves.
A study from the U.S. Career Institute found that companies can save up to $10,600 per employee who works remotely and remote work can have a positive impact on an employee’s mental and physical health. Countering many productivity claims, the study also found that 79% of managers feel their team is more productive when working remotely.
RTO does more harm than good
Fast forward a few years post-pandemic, and these long-term leases still exist. Despite all the benefits seen from remote work, companies are desperate to justify their massive spends on office space. So, employees are coerced to get their butts back in seats with rigid mandates bolstered by claims of “productivity.”
These mandates have already demonstrated a negative impact on employees and businesses alike. There is little evidence that RTO mandates improve a company’s financial performance, according to an MIT Sloan Management Review article. RTO mandates disrupt employee’s established positive work routines, leading to higher attrition, especially among high-performing employees and those with caregiving responsibilities—another strike against corporate America and its record with women in the workforce.
What’s more, RTO mandates often function as thinly veiled layoffs, further increasing attrition and the exodus of top talent while decreasing trust. A recent study from Workways found that 71% of HR leaders report eroded trust post-RTO announcements and 80% of companies lost talent because of the mandates.
Even if returning to the office actually increased productivity, to make the terms of returning so inflexible disregards the way people work. Even when these mandates are classified as “hybrid” and only require a few days in the office, companies are missing the point. To be truly productive requires flexibility and agility.
A new definition of hybrid
In 2025, defining hybrid work must go well beyond the outdated discussion of where work is being done. Hybrid must be multifaceted. Companies need to approach hybrid work by considering which projects and teams come together for collaborative roles and which need the privacy and focus of working independently—and recognizing that those parameters can change depending on project demands. It is a balance of people, places, tools, and culture.
To be clear, I’m not anti-office. There is a time and a place for bolstering corporate culture and collaboration. However, the decision should not be made by executives in an ivory tower but by team leaders based on the needs of their teams.
RTO mandates will continue to make headlines for the rest of this year and any time a major company announces its new policy. But, as these long-term leases diminish, let’s see how many mandates remain.
The debate is not and has never been about the RTO mandates themselves. The real debate is on the future of work and what that looks and feels like for leaders.
The pandemic made it clear: Companies are perfectly capable of adapting to the wants and needs of the workforce when forced to do so.
The real future of work isn’t about office space, water cooler talk, or butts in seats. It is rooted in trust, respect, and readiness to embrace change. The leaders that follow this path will set their companies up for success, winning the battle for talent and performance.
Justin Tobin is founder and president of Gather.